Correlation Between Berkshire Hathaway and Cordoba Minerals
Can any of the company-specific risk be diversified away by investing in both Berkshire Hathaway and Cordoba Minerals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Berkshire Hathaway and Cordoba Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Hathaway CDR and Cordoba Minerals Corp, you can compare the effects of market volatilities on Berkshire Hathaway and Cordoba Minerals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Berkshire Hathaway with a short position of Cordoba Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and Cordoba Minerals.
Diversification Opportunities for Berkshire Hathaway and Cordoba Minerals
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and Cordoba is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway CDR and Cordoba Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cordoba Minerals Corp and Berkshire Hathaway is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Berkshire Hathaway CDR are associated (or correlated) with Cordoba Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cordoba Minerals Corp has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and Cordoba Minerals go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and Cordoba Minerals
Assuming the 90 days trading horizon Berkshire Hathaway is expected to generate 1.01 times less return on investment than Cordoba Minerals. But when comparing it to its historical volatility, Berkshire Hathaway CDR is 6.13 times less risky than Cordoba Minerals. It trades about 0.1 of its potential returns per unit of risk. Cordoba Minerals Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 51.00 in Cordoba Minerals Corp on September 3, 2024 and sell it today you would lose (13.00) from holding Cordoba Minerals Corp or give up 25.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berkshire Hathaway CDR vs. Cordoba Minerals Corp
Performance |
| Timeline |
| Berkshire Hathaway CDR |
| Cordoba Minerals Corp |
Berkshire Hathaway and Cordoba Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and Cordoba Minerals
The main advantage of trading using opposite Berkshire Hathaway and Cordoba Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, Cordoba Minerals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cordoba Minerals will offset losses from the drop in Cordoba Minerals' long position.| Berkshire Hathaway vs. Converge Technology Solutions | Berkshire Hathaway vs. Constellation Software | Berkshire Hathaway vs. Questor Technology | Berkshire Hathaway vs. Osisko Metals |
| Cordoba Minerals vs. Camino Minerals | Cordoba Minerals vs. Hannan Metals | Cordoba Minerals vs. Atico Mining | Cordoba Minerals vs. Midnight Sun Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |